Pakistan remains trapped in a cycle of debt despite receiving IMF loans, according to a new report. The loans are mainly used to manage short-term needs rather than long-term recovery. Islamabad’s repeated failure to implement reforms has worsened fiscal vulnerabilities. IMF funds have become routine lifelines rather than exceptional support.
The report highlighted inconsistencies in Pakistan’s trade and revenue data. Revenue collection fell short by 1.2 trillion rupees, while import figures showed an $11 billion discrepancy over two fiscal years. The IMF has demanded corrective measures and transparency to restore investor confidence. Authorities hesitated to revise historical data due to concerns over growth and exports.
Debt obligations already exceed $7 billion, with external debt at 35.1% of GDP. Pakistan spends nearly 30% of export earnings on debt servicing. Exports remain stagnant, while imports exceed 22% of GDP. Short-term borrowing continues, locking the country in dependency.
Governance and revenue reforms have achieved limited results. The World Bank’s $20 billion programme supports energy, education, and infrastructure but falls short of annual debt requirements. Analysts argue that Pakistan must implement structural reforms to escape the cycle of IMF dependency.
